Bitcoin Rising From The Dead? Bulls Pick Up From A Key Fibonacci Retracement Level

Bitcoin prices rose yesterday, much to the relief of holders. Even though the coin is still confined within a clear support and resistance range, that price is green is a huge positive and sentiment boost. Ideally, confirmation of May 13 gains is crucial for uptrend continuation. In this case, how prices react at $66,000 in the near term will shape the price trajectory in the coming days and weeks. 

So far, Bitcoin bulls are pressing on, with prices in green. Still, the coin remains in a bearish formation, stuck in a broader sideways movement. On the last day, BTC steadied but is still down 3% in the previous week. Most importantly, it appears that interest is building. The average trading volume shot to over $28 billion in the past trading day. If prices continue rising, the odds of more traders joining and driving engagement will likely further boost participation.

The following Bitcoin news events are worth watching:

• Metaplanet, a firm whose shares trade on the Tokyo stock exchange, is adopting Bitcoin as a reserve asset. This development comes amid a mounting debt burden in Japan and the increasingly volatile yen. The decision could be to hedge themselves against uncertain times in one of the world’s leading economies.
• Pro-Bitcoin venture capitalist recently led a $3.5 million funding for a lending protocol building on the world’s secure network. The platform, Zest Protocol, allow BTC holders to lend or borrow. It only has six employees.

Bitcoin Price Analysis

BTC/USD is printing encouraging higher highs.

Of note, Bitcoin found support at around the 50% and the 61.8% Fibonacci retracement zone. If prices extend today, it is vital for BTC to edge above $66,000 and May 6 highs. In that event, traders might search for entries, expecting even more gains toward $70,000 and all-time highs.

However, considering the overly depressed price action and waning momentum, the possibility of BTC dropping cannot be discounted.

As it is, support lies at around the $56,500 and May 2024 lows.